Saturday, April 25, 2009

China admits to building up stockpile of gold - National Post

SHANGHAI/BEIJING - China revealed on Friday that it had secretly raised its gold reserves by three-quarters since 2003, increasing its holdings to 1,054 tonnes - or a pot worth about US$30.9-billion - and confirming years of speculation it had been buying.


Anonymous said...

This news should have a Bearish edge to it as the percentage increases for the last two years is around 4.5 percent compared to the big percentage increases of previous years. So it seems now China has leveled off its gold purchases and maybe thinking of selling to raise funds for boosting the economy.

Louis Paquette said...

I somehow doubt that. Of course I am only guessing. But for one, by my estimate from what I have read - China's gold amounts to somewhere between 1% and 1.5% of it's total foreign reserves. A mere pittance. Secondly, a large portion of their reserves are in US Dollars. And what better hedge against that, besides a large put option, is gold?

Thanks for your post.

U.S. National Debt Clock